Profits at international bank Standard Chartered rose 27% in 2007, thanks to growth in its main markets of Asia, Africa and the Middle East. Pre-tax profits were $4.04bn (£2.05bn) in 2007, up from $3.2bn in 2006.
It increased its write-downs on investments due to global financial turmoil to $300m from $116m. The company said it expected growth in the Asian economies, where it focuses its business, to be higher this year than in the US and eurozone. “Although growth rates in Asia will slow… the region now enjoys a degree of insulation and resilience,” Chairman Mervyn Davies said.
“Standard Chartered has for some time now been the darling of the UK banking sector and these sparkling figures will do the cause no harm whatsoever,” Richard Hunter, from stockbrokers Hargreaves Lansdown said. “The bank has had the dual boost of a major exposure to the booming Asian regions, whilst having a relatively light presence in the more difficult European and US economies,” he said.
In January this year, Standard Chartered’s investment vehicle Whistlejacket went into receivership with the loss of $116m. The fall in the value of its assets was prompted by uncertainty in the world’s financial markets.